 The land allocation game: Externalities and evolutionary competitionAngelo Antoci, Gianluca Iannucci, Benedetto Rocchi and Elisa Ticci Structural Change and Economic Dynamics, 2023, vol. 64, issue C, 124-133 Abstract: This study examines the dynamics and effects of land allocation choices between two different agricultural sectors, A and B, in an evolutionary context and under sectoral interdependencies. The analysis of the proposed model identifies three possible scenarios. In the first scenario, where the expansion of one sector A generates negative effects on both sectors, the outcome may be a “poverty trap”. In the second scenario, a “symbiotic” relationship between sectors exists: profits in sector A (B) increase if sector B (A) expands. This enables a stable and Pareto-superior economic diversification in the regional economy. In the third scenario, a change in land use towards sector A (B) generates negative market externalities on sector B (A); this context favors the specialization in one of the two sectors. For each scenario, policy implications and empirical examples are discussed. Keywords: Evolutionary dynamics; Land use; Farming systems; Externalities and spillovers; Quality differentiation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:64:y:2023:i:c:p:124-133 DOI: 10.1016/j.strueco.2022.12.003 Access Statistics for this article Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen More articles in Structural Change and Economic Dynamics from Elsevier |
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